Home Buying in 60804>Question Details

12355, Renter in Cicero, IL

bank counter offer

Asked by 12355, Cicero, IL Fri Nov 23, 2012

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15
If you love the home accept any terms they are asking...once you are in Escrow and you have tied up that property, then you make your demands. A strong agent will get everything you want out of this bank. You need a very experienced agent that thinks outside of the box don't settle interview them
1 vote Thank Flag Link Thu Jan 9, 2014
Dear 12355.

It is common for banks to counter offer on banked owned real estate or short sales. Banks want to recover as much money on a deal where the bank "feels" they are losing money. Just make sure your Realtor has given you goof comps in the area. If you are getting a good deal still and it is your budget it may be a really great deal without me knowing the details.

Best of Luck,

Manuel Brown, Broker
iMove Chicaggo
1 vote Thank Flag Link Sat Nov 24, 2012
Banks often do not begin the review process until an offer is received. The listing agent may have brought the price down in steps tying to get one. An issue can be that the number that draws the offer often has not been vetted by the bank. Once an offer is in for review, the bank orders a pricing analysis which it uses to determine if the offer is a fair one and should be accepted. If not, the bank will reject and hopefully come back with a counter. Given the way I've seen these play out I would take the counter much more seriously than the asking price.

Good luck,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Sat Feb 22, 2014
I work with short sales on a regular basis. It is very common for a bank to counter. I always expect a counter. You have to understand with a short sale you are working with a bank negotiator. Once you have placed an offer to the bank, they will typically order a BPO (brokers price opinion) to determine what they feel a fair market price will be. There has been some talk that Fannie mae and Freddie Mac are inflating these values but typically the BPO is what they negotiate from.

Once they get that figure, they typically do three things. If it is less than 50% the value, they may automatically reject the offer, they may accept the offer, how ever the typical response it that the counter the offer. At this point, you need a good realtor that is not just good at selling but also at negotiating. You will need to look at current comps and see if the counter is even in line with what is selling. If you are getting a mortgage, you still will have to be able to get the home appraised at the value they want. You can then counter or accept. I have had many of my buyers counter and the bank come to middle ground. Some, if have included persuasive information with the counter to support the lower amount and have been successful. A lot depends on the negotiator and the mortgage holder.

Some mortgages are held by investors and the negotiator will have to get the lower price approved. Sometimes it is successful and sometimes not. I do not advocate accepting anything just to tie up the property in the hopes to the bank agreeing. They are in the drivers seat and many times that original counter is their bottom line. It is not fair to the seller to simply tie it up as they are frequently on time constraints and they are facing foreclosure and having to move abruptly. Simply to tie up the property in the hopes to get it is simply not fair to them. I had that happen recently. The person tied it up.. then once I negotiated hard and the bank approved their price... they had forgotten and lost interest. The individuals had nearly signed a lease and moved based on this. We lost almost 90 days on this. Not fair. It takes a skilled person to handle a short sale listing and be successful.

If you like the home, put your realtor to work checking comps. If it is reasonable then take it, if not, I would not overpay.
0 votes Thank Flag Link Sat Feb 22, 2014
Happens all the time! Do the numbers and Accepted if makes sense to you or counter them back if doesn't !
0 votes Thank Flag Link Sun Oct 13, 2013
they can do that just like a homeowbner
0 votes Thank Flag Link Mon Jul 15, 2013
Hopefully you are working with a good buyers agent who can help you understand the short sale process and provide some good real estate therapy! Short sales can be frustrating because of the long waits between bank communications...good luck! I hope this works out for you.
0 votes Thank Flag Link Sun Nov 25, 2012
It sounds like you are dealing with a Short Sale. If you really like the home and can wait, then hang tight until they respond. In the meantiome have your Realtor provide you with a status update.
0 votes Thank Flag Link Sat Nov 24, 2012
Banks do make counter offers. Does that surprise you?
0 votes Thank Flag Link Sat Nov 24, 2012
What's your specific question and I can provide you with a specific answer.





Sohail A. Salahuddin | Group Founder

Innovative Property Consultants Group | Sales and Leasing

http://www.innovativepropertyconsultants.com



Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 


O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

"Locally Known, Globally Recognized"
0 votes Thank Flag Link Sat Nov 24, 2012
hi i accepted their counter offer its been two moths and no answer yet ... but before that they took 4 months to send counter offer so i was wondering why are they taking so long since the bank (i asume ) send me their number and i accepted I tought this was going to go faster from this point ....arg !
0 votes Thank Flag Link Fri Nov 23, 2012
You can counter them back or accept it.
0 votes Thank Flag Link Fri Nov 23, 2012
Usually when the bank makes a counter offer, it is a hard number. You can either accept it or move on to something else.

Best of luck,

Ivan Sagel
312.515.7823
Ivan@atproperties.com
0 votes Thank Flag Link Fri Nov 23, 2012
Often times, a short sale lender may counter your price. Other times, the lender may agree to the price but ask for other costs to be reduced or eliminated (such as HOA fees, pest control, or a water assessment).

Just because your short sale counter offer came through, this does not mean that the short sale is approved. The bank employee still needs to submit (in most cases) the short sale to the investor for final approval. While 9 out of 10 files probably make it though that step okay, you do not want to invite everyone to a party that may not happen.

So, if you want to assure that your short sale moves along swimmingly, always discuss counter offer terms with all parties before accepting them.
0 votes Thank Flag Link Fri Nov 23, 2012
Sounds like your in the middle of negotiations.. Whats your question about your bank counter offer....
0 votes Thank Flag Link Fri Nov 23, 2012
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